Section A: Objective Questions Instruction: Choose the option that best answers each question.

Here are the solutions to the economics questions:

1. Economics is best defined as the study of how societies allocate scarce resources to satisfy unlimited human wants.

   • Correct Option: (b) human wants are satisfied with limited resources

2. The central problem of economics arises because human wants are unlimited, but the resources available to satisfy those wants are limited. This is known as scarcity.

   • Correct Option: (c) resources are scarce relative to wants

3. The four main factors of production are Land, Labour, Capital, and Entrepreneurship. Advertisement is a marketing activity, not a fundamental factor of production.

   • Correct Option: (d) Advertisement

4. The reward for labour is wages. Rent is for land, interest for capital, and profit for entrepreneurship.

   • Correct Option: (d) wages

5. Opportunity cost is the value of the next best alternative forgone when a choice is made.

   • Correct Option: (b) the next best alternative forgone

6. A production possibility curve (PPC) illustrates the maximum possible combinations of two goods that an economy can produce with its given resources and technology.

   • Correct Option: (c) alternative combinations of goods that can be produced

7. Human wants are generally insatiable (unlimited) and recurring, meaning they can never be fully satisfied.

   • Correct Option: (c) They are insatiable

8. In economics, utility refers to the satisfaction or pleasure a consumer derives from consuming a good or service.

   • Correct Option: (b) usefulness or satisfaction derived from a commodity

9. Demand is defined as the willingness and ability of consumers to purchase a commodity at a given price.

   • Correct Option: (b) willingness and ability to buy a commodity at a given price

10. The law of demand states that, all else being equal, as the price of a good decreases, the quantity demanded will increase.

    • Correct Option: (c) price decreases

11. A movement along the demand curve is caused solely by a change in the price of the commodity itself. Changes in other factors (like income or taste) cause the entire curve to shift.

    • Correct Option: (c) price of the commodity

12. Supply is the quantity of a commodity that producers are willing and able to offer for sale at a given price.

    • Correct Option: (d) price

13. The law of supply states that, all else being equal, as the price of a good rises, the quantity supplied will also rise.

    • Correct Option: (b) supply rises as price rises

14. Equilibrium price is determined at the point where the demand for a commodity equals its supply.

    • Correct Option: (c) demand and supply

15. Money is generally accepted as a medium of exchange, facilitating transactions without the need for barter.

    • Correct Option: (b) medium of exchange

16. The primary functions of money include being a medium of exchange, a unit of account, and a store of value. The most fundamental is its role as a medium of exchange.

    • Correct Option: (c) Medium of exchange

17. Good money should be durable, portable, divisible, scarce, and generally acceptable. Bulkiness would make money inconvenient to use and transport, so it is not a desirable characteristic.

    • Correct Option: (d) Bulkiness

18. Barter trade is limited by the problem of double coincidence of wants, where two parties must each have what the other desires.

    • Correct Option: (c) double coincidence of wants

19. Inflation refers to a persistent rise in the general price level of goods and services in an economy.

    • Correct Option: (c) rise in the general price level

20. One effect of inflation is that it reduces the purchasing power of money, meaning the same amount of money buys fewer goods and services.

    • Correct Option: (b) reduces the purchasing power of money

21. A commercial bank's primary function is to accept deposits from the public and provide loans.

    • Correct Option: (b) deposits from the public

22. Among the options, accepting deposits is a core function of a commercial bank. Printing currency and minting coins are functions of the central bank.

    • Correct Option: (b) Accepting deposits

23. The Central Bank of Nigeria (CBN) is the apex monetary authority in Nigeria.

    • Correct Option: (c) Central Bank of Nigeria

24. One key function of a Central Bank is to issue currency (banknotes and coins) for the economy.

    • Correct Option: (b) issue currency

25. Public finance is the study of the financial activities of government, including taxation, government spending, and public debt.

    • Correct Option: (a) financial activities of government

26. Government revenue is primarily obtained through taxation.

    • Correct Option: (a) taxation

27. A tax is a compulsory levy imposed by government on individuals or businesses to fund public expenditures.

    • Correct Option: (b) compulsory levy imposed by government

28. Personal income tax is a direct tax because it is levied directly on an individual's income. Customs duty, excise duty, and Value Added Tax (VAT) are indirect taxes.

    • Correct Option: (c) Personal income tax

29. National income refers to the total value of goods and services produced within a country over a period, typically a year. This is often measured by GDP or GNP.

    • Correct Option: (b) total value of goods and services produced within a country over a period

30. Gross Domestic Product (GDP) measures the total monetary value of all final goods and services produced within a country's borders in a specific time period.

    • Correct Option: (c) goods and services produced within a country